In 2014 Division “Poultry farming and egg production” focused on production volume and effectiveness increase, and logistics elaboration.
At year end the enterprises of the Division produced 890 349 eggs, that makes 3.1% of the total egg market in Russia.
Business-plan system on the IBM Cognos platform implementation at “Varaksino poultry plant” LLC carries out multivariate break-even analysis and make exact evolution scenarios. Within the framework of productive efficiency increase we continued integration of 3 manufacturing areas of Varaksino poultry plant, by means of slaughter process, egg processing and dispatch unification.
Within the framework of productive efficiency increase we converted one of boxes for young stock into the box for egg laying birds keeping. This brought the option for extra 23 million eggs production annually. Performance of productive efficiency increase program, which was elaborated in cooperation with topline experts in the sphere, allowed the poultry plant to reduce feed costs, increase mortality rate, 1st class egg yield and strengthen economics indices.
One of the significant steps towards distribution evaluation was logistic complex starting at “Varaksino poultry plant” in Izhevsk. The complex helps to process and pack up to 1.9 million eggs per shift. Inventory control automation on the basis of WMS system, centralization of eggs processing, storage and dispatch from several manufacturing areas will upgrade production, reduce costs and delivery time. At the year-end 2014 the packaged egg share within the sale system of the Company rose from 214 to 24%, in 2015 we intend to make in 44%. In 2015 we are also about to build modern shell-egg handling plant and install new sorter at “Mendeleevskaya poultry plant” LLC in Perm region. This innovation will help to raise market egg yield from 95% to 98%, increase packaged egg share up to 30% in total output.
We upscale sales in leading retails to exploit our products in the federal market: the share of sales through the federal retailers rose from 8% to 12%. Distributor contract with “Praksis OVO” provided 10 million eggs under the brand name “Selo zelenoe” delivery to Moscow and Moscow region, total amount of “Selo zelenoe” eggs sale rose twice. In 2015 we will increase sales volume in federal retailers, promote own brands awareness and extend Private Label.
In order to support further development of the production we are planning to launch 8 already-existing and 2 new boxes reconstruction at “Varaksino poultry plant” and “Mendeleevskaya poultry plant”. This will increase egg-laying birds’ livestock. By 2015 gross collection will have increased by 135 million eggs. We will start project developing for modern technology for excrement recovery implementation. Besides our plant is going to launch water and wastewater treatment facilities reconstruction. These will improve ecological efficiency.
KEY PERFORMANCE INDICATORS
|Sales revenue, million rubles||1 526||1 621||2 216||2 335||2 597||2 858|
|Net profit, million rubles||81||319||90||98||182||417*|
|Net assets, million rubles||836||1 050||1 359||1 349||1 347||1 338|
|EBITDA, million rubles||205||452||309||346||475||679|